Page:United States Statutes at Large Volume 86.djvu/1356

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PUBLIC LAW 92-595-OCT. 27, 1972 Public Law 92-595

October 27, 1972

[s. 3337]

Small B u s i n e s s Investment Act Amendments of 1972. 75 Stat. 752. 15 USC 662. Investment companies financing disadvantaged persons. 72 Stat. 691; 81 Stat. 269. 15 USC 681.

Purchase of debentures. 81 Stat. 270; 85 Stat. 776. 15 USC 683.

Supra.

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[86

STAT.

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ACT

ij.y amend the Small Business Investment Act of 1958, and for other purposes.

Be it enacted by the Senate and House of Re-presentathnes of the United States of America in Congress assembled, That this Act may be cited as the "Small Business Investment Act Amendments of 1972". SEC. 2. The Small Business Investment Act of 1958, as amended, is further amended as follows: (a) Sections 103(3) and (7) are amended by striking " (c) " after "Section 301" at the end thereof. (b) Section 301 is amended by adding the following new subsection: " (d) Notwithstanding any other provision of this Act, a small business investment company, the investment policy of which is that its investments will be made solely in small'business concerns which will contribute to a well-balanced national economy by facilitating ownership in such concerns by persons whose participation in the free enterprise system is hampered because of social or economic disadvantages may be organized and chartered under State business or nonprofit corporation statutes, and may be licensed by the Administration to operate under the provisions of this Act." (c) Section 303 is amended— (1) by inserting the word "private" in the first sentence of paragraph (1) of subsection (b), to read "combined private paid-in capital and paid-in surplus"; (2) by striking the figure "$7,500,000" in the last sentence of paragraph (1) of subsection (b), and inserting the figure "$15,000,000"; (3) by amending paragraph (2) of said subsection (b) to read as follows: "(2) The total amount of debentures which may be purchased or guaranteed and outstanding at any one time from a company not complying with section 301(d) of this Act, which has investments or legal commitments of 65 per centum or more of its total funds available for investment in small business concerns invested or committed in venture capital, and which has combined private paid-in capital and paid-in surplus of $500,000 or more shall not exceed 300 per centum of its combined private paid-in capital and paid-in surplus. In no event shall the debentures of any such company purchased or guaranteed and outstanding under this paragraph exceed $20,000,000. Such additional purchases or guarantees which the Administration makes under this paragraph shall contain conditions to insure appropriate maintenance by the company receiving such assistance of the described ratio during the period in which debentures under this paragraph are outstanding." (d) Section 303 is amended by adding the following new subsection: "(c) Subject to the following conditions, the Administration is authorized to purchase preferred securities, and to purchase, or to guarantee the timely payment of all principal and interest payments as scheduled, on debentures issued by small business investment companies operating under authority of section 301(d) of this Act. The full faith and credit of the United States is pledged to the payment of all amounts which may be required to be paid under any guarantee under this subsection. , Kj BiliiSkil

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